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A view of the Idaho Capitol rotunda from below

Legislature Week 3: Funding May Be in Peril

It was a huge week for education news in Idaho, from budgeting to AI.
Published: January 30, 2026

Key Takeaways

  1. The budget chaos continues — and could drag down public schools in the process.
  2. The much-maligned funding formula is getting a fresh look ... sort of.
  3. Rep. Ted Hill is furious at local cities for finding flag bill loopholes.

Lawmakers Threaten to Cut Public School Funding in Favor of Corporate Tax Breaks

Their updated request flies in the face of Gov. Brad Little’s request to protect public schools budgets.

The big news: The leaders of the powerful Joint Finance-Appropriations Committee, which sets the state’s budgets, on Wednesday asked public schools and the state Medicaid program to deliver plans for budget cuts to JFAC.  

A reversal: Gov. Little and Superintendent of Public Instruction Debbie Critchfield have made it clear to JFAC leaders Sen. Scott Grow (R-Meridian) and Rep. Josh Tanner (R-Eagle) that there is no room for further budget cuts in K-12.  

• Critchfield has already pulled a request for $50 million in special education and has incorporated enrollment decreases in her plan.  

• But on Wednesday, when Grow and Tanner sent memos directing K-12 to prepare budgets including 1-2% holdbacks for fiscal years 2026 and 2027.  

• A 2% holdback would equal $55.1 million in cuts for public schools.  

• Critchfield is refusing, saying that the public schools budget she delivered already contains the savings the state needs.  “This will cause disproportionate harm to rural students,” she wrote in her response to lawmakers. “We have serious concerns about the legal risks for unmet needs with students in special education as well. We have seen this before. It took years for our schools to recover from cuts during the 2008 downturn.”

Why is JFAC reversing course?: The state already had a revenue shortfall, but federal tax cuts are deepening the hole.  

• Every session, Idaho lawmakers must decide whether to conform with taxes and tax cuts created at the federal level. Rep. Jeff Ehlers (R-Meridian) proposed a new bill this week that would accept all of the tax cuts Congress passed in the One Big Beautiful Bill.  

• Conformity would cost Idaho $155 million in individual tax holdbacks. But the cost of corporate tax breaks could be much higher — and no one seems to be able to estimate their true cost to the state.  

• The bill Ehlers is pushing makes cuts retroactive to 2025 for individuals and 2022 for businesses, which will create an even larger budget gap.  

•  Gov. Little’s proposed, very lean budget does not include federal tax breaks for fiscal year 2026. But the budget JFAC is currently building does, deepening the hole and lawmakers’ urgency.  

And yet: It doesn’t seem like many lawmakers are considering modifications to the state’s $50 million private school voucher tax credit, which could account for all but $5.1 million of JFAC’s 2% budget holdback for schools — and completely cover a 1% holdback.  

What IEA is saying: IEA released this statement to the Idaho Capital Sun on Thursday: “In a year when every single dollar is so closely scrutinized and accounted for, why aren’t lawmakers paying attention to the most unaccountable public funds they have appropriated? Reallocating the $50 million from House Bill 93 would keep over-stretched public school budgets whole, as Gov. Little promised just a few weeks ago. Instead, some lawmakers want to double down on the reckless tax cuts they approved last session so they can use public dollars to pay private school tuition — with no accountability on how that money is spent.” 

What’s next?: The budget is not a done deal by any stretch, and IEA members have the power to make their voices heard by sharing what cuts really mean for classrooms.  

Could the Funding Formula Get a Fresh Look?

Everyone knows there’s a problem. But lawmakers seem divided on the solution.

This background: Idaho’s antiquated public school funding formula is based on average daily attendance, not enrollment.  

• The problem is that Idaho’s public schools must be financially prepared to educate every enrolled student, not just those who attend classes. That creates an ongoing funding gap that is often passed on to local communities in the form of property taxes.  

• Many attempts have been made to change the funding formula, including just last year. Every one has failed to launch.  

This year’s attempt: Joint Finance-Appropriations Committee Co-Chair Rep. Josh Tanner (R-Eagle) made his pitch for a revamp this week to the House Education Committee — but it was less of a plan and more of a litany of grievances against the public school system.   

• Tanner believes districts are gaming the system by counting students who shouldn’t be counted, like students who only play sports but do not attend classes. He stopped just short of accusing districts of fraud.  

• He accused public schools of taking investments without returning results. “I’ve never seen a teacher let go, or a superintendent let go, or any type of repercussions whatsoever when we aren’t meeting metrics in certain areas,” he said. 

• Tanner also complained about technology in classrooms, that students’ writing skills don’t compare to teenagers’ writing skills during the American Civil War, and seemed to suggest that churches should take the place of the Department of Health and Welfare.  

• Lawmakers didn’t seem to understand what Tanner was asking of them. IEA member Rep. Soñia Galaviz (D-Boise) asked if the committee and Tanner could work on a fuller budget picture with the Legislative Services Office. Rep. Mark Sauter (R-Sandpoint) asked Tanner for clarity: “If there’s a plan to start with, or there’s some kind of expectation or a challenge to us, then please say so.” Tanner responded by saying, “I would love to be a dictator in this body, but unfortunately, that’s not how this body actually operates.” 

What’s next: Hardline lawmakers like Tanner are trying to make the case that public school budgets are wildly out of control and need to be cut. But if the House Education Committee meeting is any indication, future presentations will need to be based on facts rather than vibes.  

Ted Hill Tries to Claw Back Local Control with New Flag Bill

Hill says Boise mayor is giving ‘the middle finger’ to his banner ban.

It’s back, again: Rep. Ted Hill (R-Eagle) has put forth a bill to further clamp down on the flying of flags he has classified as “political,” which excludes everything but official city, state, U.S., tribal and Idaho school flags.  

• Under the law, any other flags may not be flown on city property.  

Boise found a loophole: In response to the 2025 flag ban, the City of Boise made the LGBTQ+ Pride flag and the organ donor flag official flags — a move not banned by the law — and has been flying those flags on city property ever since.  

• In testimony before the House State Affairs Committee on Thursday, Hill was visibly angry at Boise Mayor Lauren McLean and “insubordinate” cities that refused to enforce the law.  

Confusion over enforcement: The current law has been called “unenforceable” by the Ada County Sheriff. 

• Hill’s updated law is an attempt to remedy that with a $2,000-per-day penalty.  

Which flags?: Committee members had questions about flags that are currently common in areas of Idaho, like the Basque flag, which is a permanent fixture on the Basque Block in Downtown Boise. Rep. Monica Church (D-Boise) asked if Horseshoe Bend’s tradition of flying banners with the names of graduating high school students on the city’s street poles would be banned. Hill confirmed that would be true.  

• Hill said the Basque flag would be exempt under this bill, but erroneously stated that the flag (called an ikurrina) is illegal to fly in Spain. The flag was banned during General Francisco Franco’s fascist dictatorship but was legalized in 1977 after his death.  

What’s next: Hill’s bill was voted out of committee. Watch this space for further updates.  

Other News From This Week

Big news from Rep. McCann, AI in schools vote, and more.

Virtual school woes predict voucher pitfalls: Anyone looking for an example of how Idaho’s new private school voucher program can go wrong need only listen to this week’s presentation about the Idaho Home Learning Academy (IHLA) from the Office of Performance Evaluations.  

The report found that an astounding 73% of IHLA users are enrolled for supplemental learning funds.  

• The office’s report and presentation to lawmakers made two suggestions: establish clear guidelines about how IHLA payments to parents may be used, and to develop a funding formula for virtual schools.  

• Lawmakers are taking on the challenge, with Rep. Clay Handy (R-Burley), IEA member Rep. Soñia Galaviz (D-Boise), Rep. Douglas Pickett (R-Oakley) are collaborating on a bill to address IHLA issues.   

AI bill to get a vote: Sen. Kevin Cook’s (R-Idaho Falls) bill to create guidelines for using AI in public schools is heading to the Senate floor soon. Senate Bill 1227 would keep control at the local level but require school districts and charter schools to adopt their own policies on how AI may be used by students and staff.   

McCann making moves: Staunch public schools advocate Rep. Lori McCann (R-Moscow) has thrown her hat into the ring for the Idaho Senate. She will be on the ballot in May Republican primary — and so will the person vying for her House seat.  

Social media bill: House State Affairs passed a new bill by Rep. Jaron Crane (R-Nampa) out of committee that would regulate social media use for children. IEA is reviewing the bill, which would require tech companies to establish new requirements to implement, monitor, and enforce measures aimed at reducing harms linked to addictive features on their services. 

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